Exercise 3-5A Determine the amount of net income (LO3-1) During the course of your examination of the inancal statements of Trojan Corpcration for the year ended December 3t, 2021 you come ocross several items needing further consideration Curreetly, net ncome is s100 000 t An nsurance poicy covering 12 months was purchased on October 1.2021 for $24000 The entre amount was debted to Prepaid insurance and no adusting entry was made for the item in 2021 2 Ding 2021, the company receved a $4000 cash advance from a customer for services to be performed in 2022 The $4,000 was incorrecty credited to Service Revenue 3 There were no supplies listed in the balance sheet under assets. However, you discover thar supples costing $2,750 were on hand December 31, 2021 4 Teojan borowed $70000 trom a local bank on September 1 2021. Principal and interest at 9% wll be paid on August 31 2022 No accrual wos made for Interest in 2021. Required Use g the informnion in 1 through 4 above, delermare the proper emant of net incom" cf December 31, 2021 Do not round intermediene celculations. Amounts to be deducted should be indicoted with a minus sign Answer is complete but not entirely correct. 6003 102,75 0 180 or incorrect for the work you have 8 Exercise 3-5A Determine the amount of net income (LO3-1) During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2021, you come across several items needing further consideration. Currently, net income is $100000 nts 1. An insurance policy covering 12 months was purchased on October 1.2021, for $24,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2 During 2021, the company received a $4,000 cash advance from a customer for services to be performed in 2022. The $4 incorrectly credited to Service R 3. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing S at December 31, 2021 4 Trojan borrowed S 70.000 from a local bank on September 1, 2021 Principal and interest at 9% will be paid on August 31, 2022, No accrual was made for interest in 2021 Required: Using the information in 1 through 4 above, determine the proper amount of net income as of December 31. 2021 (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) & Answer is complete but not entirely correct. S 100,000 Net 6,000 3 for insurance 102,750 2 750 2,100 90 650 2. Adjustment for deferred revenue 3, Adjustment for supplies 4. Adjustment for interest Net income (adjusted) Exercise 3-5A Determine the amount of net income (LO3-1) During the course of your examination of the inancal statements of Trojan Corpcration for the year ended December 3t, 2021 you come ocross several items needing further consideration Curreetly, net ncome is s100 000 t An nsurance poicy covering 12 months was purchased on October 1.2021 for $24000 The entre amount was debted to Prepaid insurance and no adusting entry was made for the item in 2021 2 Ding 2021, the company receved a $4000 cash advance from a customer for services to be performed in 2022 The $4,000 was incorrecty credited to Service Revenue 3 There were no supplies listed in the balance sheet under assets. However, you discover thar supples costing $2,750 were on hand December 31, 2021 4 Teojan borowed $70000 trom a local bank on September 1 2021. Principal and interest at 9% wll be paid on August 31 2022 No accrual wos made for Interest in 2021. Required Use g the informnion in 1 through 4 above, delermare the proper emant of net incom" cf December 31, 2021 Do not round intermediene celculations. Amounts to be deducted should be indicoted with a minus sign Answer is complete but not entirely correct. 6003 102,75 0 180 or incorrect for the work you have 8 Exercise 3-5A Determine the amount of net income (LO3-1) During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2021, you come across several items needing further consideration. Currently, net income is $100000 nts 1. An insurance policy covering 12 months was purchased on October 1.2021, for $24,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2 During 2021, the company received a $4,000 cash advance from a customer for services to be performed in 2022. The $4 incorrectly credited to Service R 3. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing S at December 31, 2021 4 Trojan borrowed S 70.000 from a local bank on September 1, 2021 Principal and interest at 9% will be paid on August 31, 2022, No accrual was made for interest in 2021 Required: Using the information in 1 through 4 above, determine the proper amount of net income as of December 31. 2021 (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) & Answer is complete but not entirely correct. S 100,000 Net 6,000 3 for insurance 102,750 2 750 2,100 90 650 2. Adjustment for deferred revenue 3, Adjustment for supplies 4. Adjustment for interest Net income (adjusted)